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Exam 1: Accounting and The Financial Statements

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Question 121

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The accountant prepared the following list of account balances from the company's records for the year ended December 31, 2019.Sales Revenue -Determine the following amounts for Backus Tractor Sales: A)The total revenues for 2019. B)The total expenses for 2019. C)What is the purpose of the Income Statement? D)Is this company profitable? Explain your answer. E)Is this the first year of operations for this company? Explain your answer.

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A)$1,680,000
($1,650,000 Sales Revenue +...

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Question 122

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Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.) -Interest Income

A) Assets
B) Liabilities
C) Revenues
D) Expenses
E) Stockholders' Equity

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Question 123

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Property, plant and equipment is classified as ____________________ assets on the balance sheet.

Match each statement to the item listed below. -Cash flows related to obtaining capital for the company

Which one of the following is not one of the activities on the Statement of Cash Flows?

The purpose of financial reporting is to provide economic information to investors, creditors, and other financial statement users.

The financial statement in which you list revenues, starting with sales revenue (service revenue), is called the ____________________.

The following amounts were taken from the accounting records at December 31, 2019: ? A)Calculate Total Assets. B)Calculate Net Income for 2019. C)Calculate Total Stockholders' Equity at the end of 2019. D)Calculate Total Stockholders' Equity at the beginning of 2019 assuming there were no stock transactions during the year.

What financial statement items are investors and creditors most interested in and why?

Most annual reports contain the following list of basic elements. For each element identify the person(s) who prepared the element and describe the information a user would expect to find in each element. Some information is verifiable, while other information is subjectively chosen by management. Indicate whether the information in each element is verifiable.

A certain company started business on January 1, 2019 with assets of $1,000,000 and stockholders' equity of $565,000. By the end of the year, assets increased by $100,000 and liabilities decreased by $150,000. Other than net income or loss, the only change in stockholders' equity was dividends of $50,000. A)What was the amount total stockholders' equity at the end of the year? B)What was the amount net income or net loss for the year?

Current assets minus current liabilities is called ____________________.

Which of the following best describes the term "current assets"?

The following information is taken from the Balance Sheet at December 31, 2019: ? A)How much did creditors provide to this company? B)On which financial statement would an investor look to see if any stock was issued during the year?

The four basic financial statements are the Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows.

The three financial statements in which net income can be found are the ____________________, ____________________ and ____________________.